What Happened
- Foreign Secretary Misri stated that India's approach is to "maintain multiple sources of supply" for energy procurement
- He highlighted India's commitment to diversifying energy sources while prioritising national interests
- The statement came in response to Trump's claim that India would stop buying Russian oil
- Misri framed energy procurement as a matter of energy security rather than geopolitical alignment
- India's position suggests a gradual transition rather than an abrupt halt to Russian crude purchases
Static Topic Bridges
Strategic Petroleum Reserves and Energy Security Infrastructure
India's energy security infrastructure includes strategic petroleum reserves (SPR) designed to buffer against supply disruptions, along with pipeline networks and refining capacity that determine how quickly India can switch between crude sources.
- Indian Strategic Petroleum Reserves Ltd (ISPRL): Government company under the Ministry of Petroleum and Natural Gas
- Three SPR facilities: Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT), Padur (2.5 MMT) — total capacity 5.33 MMT
- SPR provides approximately 9.5 days of import cover (IEA recommends 90 days for member nations)
- Phase II SPR expansion: Proposed at Chandikhol (Odisha) — 4 MMT capacity; Padur expansion also planned
- Combined strategic + commercial reserves: Approximately 65-70 days of consumption
- India is an Association Country of the IEA (since 2017) — not a full member, as full membership requires OECD membership
- India participates in IEA's Collective Emergency Response Mechanism despite not being a full member
- India coordinated SPR releases with IEA member nations in 2022 following the Ukraine conflict
Connection to this news: Misri's emphasis on "multiple sources" is supported by India's SPR infrastructure, which provides a buffer during supply transitions — though the current 9.5-day strategic reserve is far below IEA-recommended levels, limiting India's flexibility during a rapid shift away from Russian crude.
OPEC+ and Global Oil Market Dynamics
India's crude oil sourcing decisions are influenced by OPEC+ production decisions, global pricing mechanisms, and the discount structure for non-OPEC crude (including Russian oil).
- OPEC+ is a coalition of OPEC's 13 members and 10 non-OPEC oil-producing nations (including Russia) that coordinates production levels to influence global prices
- OPEC members include Saudi Arabia, Iraq, UAE, Kuwait, Iran, Nigeria, and others; non-OPEC partners include Russia, Mexico, Kazakhstan, and others
- India has consistently called on OPEC+ to maintain reasonable production levels and oil prices
- Brent crude and WTI (West Texas Intermediate) are the two primary global oil price benchmarks
- Russian Urals crude has traded at a discount of $15-30 per barrel below Brent since 2022 due to Western sanctions
- This discount was a primary driver of India's increased Russian crude purchases — saving India an estimated $7-8 billion annually
- India's petroleum minister has stated that India will buy oil "from wherever it is cheapest"
- The G7 price cap on Russian oil ($60 per barrel for crude) was imposed in December 2022 — India has broadly complied but interpreted it flexibly
Connection to this news: If India reduces Russian purchases, it must replace that crude from OPEC+ sources at higher prices (without the Russia discount), directly impacting refinery economics, consumer prices, and the fiscal deficit through higher petroleum subsidy requirements.
India's Energy Transition and Long-Term Diversification
India's long-term energy strategy combines fossil fuel import management with an ambitious renewable energy transition, aimed at reducing structural dependence on imported hydrocarbons.
- India's renewable energy target: 500 GW of non-fossil fuel installed capacity by 2030 (current: approximately 200 GW as of early 2026)
- India's net-zero commitment: 2070 (announced at COP26, Glasgow, 2021)
- National Solar Mission target: 100 GW (largely achieved); wind energy capacity: ~47 GW
- Green Hydrogen Mission (launched 2023): Target of 5 MMT annual green hydrogen production by 2030, investment of Rs 19,744 crore
- India's Ethanol Blending Programme: Target of 20% ethanol blending in petrol by 2025-26 (achieved approximately 15% by early 2026)
- India's coal consumption continues to increase despite renewables growth — the energy transition supplements rather than replaces fossil fuels in the near term
- India's primary energy mix (2024-25): Coal ~55%, Oil ~27%, Natural Gas ~6%, Renewables and others ~12%
Connection to this news: While India's renewable energy transition will eventually reduce crude oil dependence, in the near-to-medium term (2026-2035), crude oil imports will remain critical — making the diversification of supply sources (as Misri emphasised) a pragmatic necessity rather than a mere diplomatic position.
Key Facts & Data
- India's SPR capacity: 5.33 MMT (approximately 9.5 days of import cover)
- SPR locations: Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT), Padur (2.5 MMT)
- IEA recommended reserve: 90 days; India's combined strategic + commercial: ~65-70 days
- Russian Urals crude discount: $15-30 per barrel below Brent since 2022
- G7 price cap on Russian crude: $60 per barrel (December 2022)
- India's renewable energy capacity: ~200 GW (target: 500 GW by 2030)
- India's net-zero target: 2070
- India's primary energy mix: Coal ~55%, Oil ~27%, Gas ~6%, Renewables ~12%
- India's ethanol blending: ~15% achieved (target: 20% by 2025-26)